The Board commenced discussions considering comments received on the exposure draft.

Definitions. The Board considered whether any changes should be made to the definitions of exploration and evaluation assets, exploration and evaluation expenditures, and exploration of and evaluation for mineral resources, and in particular whether further guidance on the inclusion of general and administrative expenses in the initial measure of these assets should be provided.

Exemption from IAS 8 hierarchy. The Board agreed that no changes be made to the definitions but that further guidance be provided. In addition they agreed that no guidance be provided on general and administrative expenses or the inclusion of any other expenses.

The Board agreed to retain the exemption from the IAS 8 hierarchy for exploration and evaluation activities, as proposed in ED 6, but to provide further guidance for new entities consistent with the standard on insurance contracts.

Revaluation. The Board agreed to retain the ED 6 proposals permitting revaluation of assets.

Changes in accounting policies. The Board agreed to retain the ED 6 proposals regarding changes in accounting policies.

Classification of exploration and evaluation assets. The Board agreed that classification of exploration and evaluation assets could continue under either IAS 16 (tangible asset) or IAS 38 (intangible asset).

Impairment. The Board discussed the ED 6 proposals in respect of impairment of the assets and the cash generating unit. The Board noted that a number of commentators had expressed concern about those proposals. The Board concluded that certain relief should be provided to ensure that the proposals are workable. The staff were requested to develop proposals to require an impairment test in certain circumstances. The specific circumstances need to be developed.

Disclosure. The staff recommended that an explicit requirement be added to require the disclosures required by either IAS 16 or IAS 38 whichever is relevant. The Board agreed.

Timetable. Publication of a standard is anticipated in December 2004.